highest current yield
Which of the following bonds offers the highest current yield?
a. A(n) 9.66%, 20-year bond quoted at 100.576
b. A(n) 16.10%, 15-year bond quoted at 167.627
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c. A(n) 4.83%, 18-year bond quoted at 50.288
The current yield of the bond in part a is
%. (Round to two decimal places.)
The current yield of the bond in part b is
%. (Round to two decimal places.)
The current yield of the bond in part c is
%. (Round to two decimal places.)
Which of the three bonds offers the highest current yield? (Select the best answer below.)
A. The bond in part b has the highest current yield because it has the highest coupon rate and the highest market value.
B. All of the above bonds have a current yield of approximately 9.60%.
C. The bond in part a has the highest current yield because it is held for the longest period of time.
